Michigan State Victories
The following NFIB victories will make a real difference for your business.
Recent NFIB/Michigan victories:
Small business wins big in property rights protection
As a result of the passage of NFIB backed Proposal 4, small-business owners can breathe a little easier knowing that local and state government will now be prohibited from taking their property and handing it over to a private developer. Since the unfortunate U.S. Supreme Court decision that sided against property owners (the "Kelo" decision), NFIB/Michigan has worked at the state level to end the abuse of private property rights by government, in particular, local government.
New youth lower minimum wage softens the sting
While small-business owners are still smarting from a 2006 hike in the minimum wage, efforts by NFIB helped establish a new youth training minimum wage for workers who are younger than 18. The wage is 85 percent of the standard minimum wage rates.
Budget-busting ballot proposal defeated
In 2006, ballot Proposal 5, which was opposed by NFIB members, was dealt a resounding defeat by Michigan's voters garnering only 37 percent support. The defeat came despite over $2 million in spending by the Michigan Education Association and the National Education Association the top teacher labor unions. Grassroots efforts by NFIB and opposition coalition members put the word out to voters that Prop 5 was nothing more than a money-grab by teacher unions that had more to do with funding an unsustainable retirement and health-care program than helping kids. Had the proposal passed, higher taxes on small business and citizens were sure to follow.
Overtime exemptions restored
NFIB was successful in helping to restore minimum wage overtime exemptions that would have been lost due to Michigan's minimum wage being higher the current federal minimums. Without this legislation, certain overtime exemptions would have expired Oct. 1, 2006, and approximately 370,000 Michigan employees would have lost their federally granted overtime exemptions resulting in lost jobs and increased costs for Michigan business.
Single Business Tax repealed
After almost thirty years of enduring the nation's most punitive business tax, small-business owners were finally granted relief with the vote of the Michigan legislature to end the Single Business Tax. In 2006, NFIB announced its support of an effort by Oakland County Executive L. Brooks Patterson to gather enough signatures to put the issue before the legislature for repeal without a need for the governor's approval. The Legislature acted on the petition and the SBT was repealed effective Dec. 31, 2007.
Representing small-business view on replacement tax efforts
NFIB will be working to be certain that small business does not end up shouldering the burden while big business enjoys narrow tax exemptions and corporate welfare in the debate over replacing the Single Business Tax.
Blocked small-business tax shift
In 2005, the administration huddled with large corporations to develop a plan to change Michigan's Single Business Tax by shifting the burden to many small businesses while doling out huge cuts to the biggest businesses. NFIB/Michigan supports tax relief for manufacturers, but we oppose raising taxes on other job providers in a move to shift taxes rather than cut them. NFIB efforts were successful in derailing this tax shift plan.
MIOSHA ergonomics efforts stalled
NFIB has taken the lead in attempting to halt the Michigan Occupational Safety and Health Administration from making Michigan the only state besides California to have a state-specific ergonomics rule complete with useless paperwork, citations, fines and penalties. NFIB will continue to fight this new regulation on Michigan businesses.
Defeated state death tax
NFIB/Michigan's grassroots action can be credited for helping to defeat Governor Granholm's proposal to bring back Michigan's dreaded death tax. NFIB had fought for more than 10 years to repeal Michigan's death tax, finally achieving victory in 1993.
Passed tort reform
The Legislature passed, and Gov. Jennifer Granholm signed, legislation that would shield restaurants and other food establishments from being sued by customers who frequent them and then claim weight or obesity problems from eating the food.
Halted workers' compensation tax
Over the years, various administrations have proposed to replace general fund dollars with fees and taxes that would have been passed on to businesses to fund the Workers' Compensation Bureau. This action would essentially create a new workers' compensation tax on businesses. NFIB/Michigan has been successful in halting this attempt to place hidden taxes on small business.
Avoided major tax hikes
In 2004-05 the state budget dominated the legislative session. Although many one-time budget fixes such as accelerated property tax collection were employed, the budget was balanced while major tax increases in primary business taxes were avoided.
Major tax hikes avoided
As with last year, balancing the state budget dominated the session in 2004. Although many one-time budget fixes, such as accelerated property tax collection, were employed, this year's budget was balanced while major tax increases in primary business taxes were avoided.
Identity theft bills modified
As originally introduced, a package of bills intended to make it harder for criminals to steal a person's identity to commit fraud would have resulted in paperwork and increased costs for small business. NFIB was able to effect changes to the bills to correct the problems.
2003-2004 Budget Avoids Major Tax Increases: With strong NFIB pressure, the governor and legislative leaders completed action on the budget and avoided the temptation to increase the single business and income tax. Calls by most Democrat and some Republican lawmakers to postpone planned income tax cuts were resisted by legislative leaders and the governor. The rate will be cut to 3.9 percent for 2004. NFIB continues to send the message to lawmakers that Michigan does not have a revenue problem, it has a spending problem and raising taxes is not the answer.
NFIB Halts Major Fee Increases on Small Business: NFIB efforts were successful in lowering a proposed new fee of $600 on some small businesses for a permit to $150. NFIB has made it clear to lawmakers and the governor that new fees to replace state general fund revenue are nothing more than another name for tax increases. While small business may have dodged major tax hikes in the 2003-2004 budget, NFIB has been fighting dozens of new fees that have been proposed.
Unemployment Payroll Tax Cut: NFIB efforts were successful in obtaining several pro-small business reforms to Michigan's Unemployment Insurance system including: lowering the taxable wage base from $9500 to $9000, shifting claims less than $200 to the nonchargeable benefit component, lowering the tax rate for businesses without claims, tightening language on the issue of voluntary quits and denying eligibility to claimants who were discharged for disciplinary reasons. Lowering the wage base will immediately lower unemployment taxes for many small businesses.
Tax on Workers' Compensation Halted: NFIB efforts were successful in killing an attempt to create a new tax on businesses that carry workers' compensation insurance. In another attempt to pass a tax off as a "user fee," all businesses that carry workers' compensation in Michigan would have been assessed a tax to fund the Bureau of Workers Disability, the state agency that handles and administers workers compensation in Michigan. The Bureau is currently funded by the state general fund and this move would have freed up general fund money for diversion to other programs or to cut the budget deficit. NFIB pushed the position that this is not a user fee but a tax on business because workers' compensation is not some government service optional to Michigan businesses. It is the law that it must be carried by a business with employees.
Michigan Franchisees to Benefit from NFIB-Backed Bill: In the last days of the 2001 session, NFIB pushed hard for passage of a bill that restores a key small business tax deduction. The bill would reinstate the ability of franchise holders (franchisees) to deduct up-front and ongoing fees paid to the grantors of franchises (franchisors) when calculating their SBT liability. The deduction was an important and widely used tool by franchisees until it was taken away in a 1997 decision of the Michigan Court of Appeals.
VICTORY: 2002 -- Through the leadership of NFIB and its members, attempts to halt income tax cuts passed in 2000 have been blocked. In addition, the Unemployment Insurance tax base was lowered from $9,500 to $9,000, immediately lowering costs for many small businesses.
VICTORY: 2002 -- NFIB is actively opposing Blue Cross/Blue Shield's attempt to pass government-set "rate bands" -- price controls that would require all health insurers to charge the same rates as Blue Cross. This development would strengthen Blue Cross's monopoly and cause small business health care costs to skyrocket.
HOT BUTTON: With strong support from NFIB, the Michigan House passed a bill that prohibits local minimum wage ordinances. However, two union-supported amendments were attached to the bill on the House floor that may become problematic. NFIB is working to stop local governments from micromanaging your business with local big government interference.
VICTORY: In legislation passed this year, NFIB was able to include language that directs the Michigan Public Service Commission (MPSC) to stop utilities from using their monopoly position to compete with small businesses in the area of furnace repair, sales and installation and any other endeavors. As a result, the MPSC recently adopted regulations designed to stop unfair competition from big monopoly utility companies.
